PITTSBURGH, July 26, 2016
/PRNewswire/ -- United States Steel Corporation (NYSE: X)
reported a second quarter 2016 net loss of $46 million, or $0.32 loss per diluted share, which included a
favorable adjustment of $23 million,
or $0.16 per diluted share,
associated with a change in estimate for supplemental unemployment,
severance and health care continuation costs and a loss on debt
extinguishment of $24 million, or
$0.17 loss per diluted share.
This compared to a second quarter 2015 net loss of $261 million, or $1.79 loss per diluted share, and a first quarter
2016 net loss of $340 million, or $2.32 loss per diluted share.
For a description of the non-generally accepted accounting
principles (non-GAAP) measures and a reconciliation from net
earnings (loss) attributable to U. S. Steel, see the Non-GAAP
Financial Measures section.
Earnings
Highlights
|
|
(Dollars in
millions, except per share amounts)
|
2Q
2016
|
1Q
2016
|
2Q
2015
|
Net
Sales
|
$
|
2,584
|
|
$
|
2,341
|
|
$
|
2,900
|
|
Segment earnings
(loss) before interest and income taxes
|
|
|
|
Flat-Rolled
|
$
|
6
|
|
$
|
(188)
|
|
$
|
(64)
|
|
U. S. Steel
Europe
|
55
|
|
(14)
|
|
20
|
|
Tubular
|
(78)
|
|
(64)
|
|
(66)
|
|
Other Businesses
|
10
|
|
14
|
|
6
|
|
Total segment loss
before interest and income taxes
|
$
|
(7)
|
|
$
|
(252)
|
|
$
|
(104)
|
|
Postretirement
benefit income (expense)
|
12
|
|
16
|
|
(14)
|
|
Other items not
allocated to segments
|
23
|
|
(25)
|
|
(274)
|
|
Earnings (loss)
before interest and income taxes
|
$
|
28
|
|
$
|
(261)
|
|
$
|
(392)
|
|
Net interest and
other financial costs
|
81
|
|
65
|
|
55
|
|
Income tax
(benefit) provision
|
(7)
|
|
14
|
|
(186)
|
|
Less: Net earnings
attributable to the noncontrolling interests
|
—
|
|
—
|
|
—
|
|
Net loss
attributable to United States Steel Corporation
|
$
|
(46)
|
|
$
|
(340)
|
|
$
|
(261)
|
|
-Loss per basic
share
|
$
|
(0.32)
|
|
$
|
(2.32)
|
|
$
|
(1.79)
|
|
-Loss per diluted
share
|
$
|
(0.32)
|
|
$
|
(2.32)
|
|
$
|
(1.79)
|
|
|
|
|
|
Adjusted earnings
(loss) before interest, income taxes, depreciation and amortization
(EBITDA) (a)
|
$
|
134
|
|
$
|
(107)
|
|
$
|
20
|
|
(a) Please refer to the Non-GAAP Financial Measures
section of this document for the reconciliation of net loss
attributable to United States Steel Corporation to adjusted
EBITDA.
Commenting on results, U. S. Steel President and Chief
Executive Officer Mario Longhi said,
"Our second quarter results improved significantly from the first
quarter as our European segment posted its best results since the
third quarter of 2008 and our Flat-Rolled segment returned to
profitability. Our improving cost structure continues to drive
increases in our margins and the recent increases in steel prices
started to be reflected in our results. Also, our successful debt
offering, continued reductions in working capital, and increasing
cash generation significantly improved financial flexibility and
our cash and liquidity position. While market conditions have
improved recently, we remain focused on lowering our break-even
point and working closely with our customers to improve our market
position and create value for all of our stakeholders."
Segment loss before interest and income taxes was $7 million, or $2
per ton, for the second quarter of 2016 compared with segment loss
before interest and income taxes of $252
million, or $70 per ton, in
the first quarter of 2016 and segment loss before interest and
income taxes of $104 million, or
$27 per ton, in the second quarter of
2015.
For the second quarter 2016, we recorded a tax benefit of
$7 million on our pre-tax loss of
$53 million. Due to the full
valuation allowance on our domestic deferred tax assets, the tax
provision does not reflect any tax benefit for domestic pretax
losses.
We generated positive operating cash flow of $313 million for the six months ended
June 30, 2016. As of
June 30, 2016, U. S. Steel had
$820 million of cash and $2.4 billion of total liquidity.
Segment Analysis
Second quarter results for our Flat-Rolled segment improved from
the first quarter as steel prices increased throughout the quarter.
The increase in average realized price reflects the flow through of
higher index prices to our monthly contracts and increased pricing
on spot business. Second quarter results also improved sequentially
as the first quarter results included a $50
million unfavorable effect from planned liquidations of
inventory costed using the last-in-first-out (LIFO) method related
to our targeted working capital reductions in 2016. Maintenance and
outage costs were higher in the second quarter due to planned and
unplanned outages at Gary Works early in the quarter.
Second quarter results for our European segment increased
compared to the first quarter. Higher average realized euro-based
prices combined with higher volumes, favorable raw material prices,
improved operating efficiencies, and increased Carnegie Way
benefits contributed to better results.
Second quarter results for our Tubular segment decreased
compared to the first quarter primarily due to lower shipments
and prices. Shipments were adversely impacted as average rig
counts were lower in the second quarter.
2016 Outlook
Commenting on U. S. Steel's outlook for 2016, Longhi said, "The
significant improvements we have made to our earnings power through
our Carnegie Way transformation will become more apparent as market
prices recover from the very low levels at the end of 2015.
While we began to realize some benefit from recent price increases
in the second quarter, we will see better average realized prices,
primarily in our Flat-Rolled and European segments, in the second
half of the year. The steel industry continues to face challenging
conditions as a result of global overcapacity and unfair trade
practices. We remain focused on improving our trade laws and their
enforcement, and we are encouraged that final affirmative
determinations in recent trade cases have been a catalyst for
increasing steel prices. Our Carnegie Way journey continues to
create improvements in our business model that will enable us to be
profitable across the business cycle."
If market conditions, which include spot prices, customer
demand, import volumes, supply chain inventories, rig counts and
energy prices, remain at their current levels, we would expect:
- 2016 net earnings to be approximately $50 million, or $0.34 per share, and adjusted EBITDA to be
approximately $850 million.
- Results for our Flat-Rolled and European segments should each
be higher than their 2015 results and results for our Tubular
segment should be lower than their 2015 results.
- To be cash positive for the year, including approximately
$400 million of cash benefits from
working capital improvements in 2016, primarily related to better
inventory management, driven by improved sales and operations
planning practices, helping to offset growing accounts receivables
balances.
We believe market conditions will change, and as changes occur
during the balance of 2016, our net earnings and adjusted EBITDA
should change consistent with the pace and magnitude of changes in
market conditions.
We expect improved results for Other Businesses, primarily from
real estate, and approximately $60
million of post retirement benefit income.
Please refer to the Non-GAAP Financial Measures section of this
document for the reconciliation of the Outlook net earnings to
adjusted EBITDA.
*****
We present adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share, earnings (loss) before interest, income
taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA,
which are non-GAAP measures, as additional measurements to enhance
the understanding of our operating performance.
We believe that EBITDA, considered along with the net earnings
(loss), is a relevant indicator of trends relating to cash
generating activity and provides management and investors with
additional information for comparison of our operating results
to the operating results of other companies.
Adjusted net earnings (loss) and adjusted net earnings (loss)
per diluted share are non-GAAP measures that exclude the effects of
restructuring charges, impairment charges, losses associated with
U. S. Steel Canada and losses on
debt extinguishment that are not part of the Company's core
operations. Adjusted EBITDA is also a non-GAAP measure that
excludes the effects of restructuring charges, impairment charges
and losses associated with U. S. Steel Canada. We present
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA to enhance the understanding of
our ongoing operating performance and established trends affecting
our core operations, particularly cash generating activity, by
excluding the effects of restructuring charges, impairment charges
and losses associated with non-core operations that can obscure
underlying trends. U. S. Steel's management considers
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA useful to investors by
facilitating a comparison of our operating performance to the
operating performance of our competitors, many of which use
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA as alternative measures of
operating performance. Additionally, the presentation of
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA provides insight into
management's view and assessment of the Company's ongoing operating
performance, because management does not consider the adjusting
items when evaluating the Company's financial performance or in
preparing the Company's annual financial outlook. Adjusted net
earnings (loss), adjusted net earnings (loss) per diluted share and
adjusted EBITDA should not be considered a substitute for net
earnings (loss), earnings (loss) per diluted share or other
financial measures as computed in accordance with U.S. GAAP and is
not necessarily comparable to similarly titled measures used by
other companies.
A consolidated statement of operations (unaudited), consolidated
cash flow statement (unaudited), condensed consolidated balance
sheet (unaudited) and preliminary supplemental statistics
(unaudited) for U. S. Steel are attached.
The company will conduct a conference call on second quarter
earnings on Wednesday, July 27, at
8:30 a.m. Eastern Daylight. To
listen to the webcast of the conference call, visit the
U. S. Steel website, www.ussteel.com, and click on
"Current Information" under the "Investors" section.
For more information on U. S. Steel, visit our website
at www.ussteel.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains information that may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Generally, we have
identified such forward-looking statements by using the words
"believe," "expect," "intend," "estimate," "anticipate," "project,"
"target", "forecast", "aim," "will", "should" and similar
expressions or by using future dates in connection with any
discussion of, among other things, operating performance, trends,
events or developments that we expect or anticipate will occur in
the future, statements relating to volume growth, share of sales
and earnings per share growth, and statements expressing general
views about future operating results. However, the absence of these
words or similar expressions does not mean that a statement is not
forward-looking. Forward-looking statements are not historical
facts, but instead represent only the Company's beliefs regarding
future events, many of which, by their nature, are inherently
uncertain and outside of the Company's control. It is possible that
the Company's actual results and financial condition may differ,
possibly materially, from the anticipated results and financial
condition indicated in these forward-looking statements. Management
believes that these forward-looking statements are reasonable as of
the time made. However, caution should be taken not to place undue
reliance on any such forward-looking statements because such
statements speak only as of the date when made. Our Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our Company's historical experience and our present
expectations or projections. These risks and uncertainties include,
but are not limited to the risks and uncertainties described in
"Item 1A. Risk Factors" in our Annual Report on Form 10-K for
the year ended December 31, 2015, and those described from
time to time in our future reports filed with the Securities and
Exchange Commission.
UNITED STATES
STEEL CORPORATION
|
STATEMENT OF
OPERATIONS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
June 30
|
|
March 31
|
|
June 30
|
|
June 30,
|
(Dollars in millions,
except per share amounts)
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
NET SALES
|
|
$
|
2,584
|
|
|
$
|
2,341
|
|
|
$
|
2,900
|
|
|
$
|
4,925
|
|
|
$
|
6,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
(INCOME):
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(excludes items shown below)
|
2,397
|
|
|
2,436
|
|
|
2,792
|
|
|
4,833
|
|
|
5,858
|
|
|
Selling, general and
administrative expenses
|
64
|
|
|
69
|
|
|
107
|
|
|
133
|
|
|
209
|
|
|
Depreciation,
depletion and amortization
|
129
|
|
|
129
|
|
|
138
|
|
|
258
|
|
|
282
|
|
|
Earnings from
investees
|
(28)
|
|
|
(45)
|
|
|
(17)
|
|
|
(73)
|
|
|
(23)
|
|
|
Loss on write-down of
retained interest in USSC
|
—
|
|
|
—
|
|
|
255
|
|
|
—
|
|
|
255
|
|
|
Restructuring and
other charges
|
(6)
|
|
|
10
|
|
|
19
|
|
|
4
|
|
|
172
|
|
|
Net loss (gain) on
disposal of assets
|
—
|
|
|
3
|
|
|
(1)
|
|
|
3
|
|
|
(1)
|
|
|
Other income,
net
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
2,556
|
|
|
2,602
|
|
|
3,292
|
|
|
5,158
|
|
|
6,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
BEFORE INTEREST AND INCOME TAXES
|
28
|
|
|
(261)
|
|
|
(392)
|
|
|
(233)
|
|
|
(579)
|
|
Net interest and
other financial costs
|
81
|
|
|
65
|
|
|
55
|
|
|
146
|
|
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
(53)
|
|
|
(326)
|
|
|
(447)
|
|
|
(379)
|
|
|
(696)
|
|
Income tax (benefit)
provision
|
(7)
|
|
|
14
|
|
|
(186)
|
|
|
7
|
|
|
(360)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(46)
|
|
|
(340)
|
|
|
(261)
|
|
|
(386)
|
|
|
(336)
|
|
|
Less: Net loss
attributable to the
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NET LOSS ATTRIBUTABLE
TO
|
|
|
|
|
|
|
|
|
|
|
UNITED STATES STEEL
CORPORATION
|
$
|
(46)
|
|
|
$
|
(340)
|
|
|
$
|
(261)
|
|
|
$
|
(386)
|
|
|
$
|
(336)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to
|
|
|
|
|
|
|
|
|
|
United
States Steel Corporation stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.32)
|
|
|
$
|
(2.32)
|
|
|
$
|
(1.79)
|
|
|
$
|
(2.64)
|
|
|
$
|
(2.31)
|
|
|
Diluted
|
|
$
|
(0.32)
|
|
|
$
|
(2.32)
|
|
|
$
|
(1.79)
|
|
|
$
|
(2.64)
|
|
|
$
|
(2.31)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares, in thousands
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
146,582
|
|
|
146,402
|
|
|
145,962
|
|
|
146,492
|
|
|
145,848
|
|
|
Diluted
|
|
146,582
|
|
|
146,402
|
|
|
145,962
|
|
|
146,492
|
|
|
145,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
UNITED STATES
STEEL CORPORATION
|
CASH FLOW STATEMENT
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
June 30,
|
(Dollars in
millions)
|
|
2016
|
|
2015
|
Cash provided by
(used in) operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(386)
|
|
|
$
|
(336)
|
|
|
Depreciation,
depletion and amortization
|
258
|
|
|
282
|
|
|
Loss on write-down of
retained interest in USSC
|
—
|
|
|
255
|
|
|
Restructuring and
other charges
|
4
|
|
|
172
|
|
|
Pensions and other
postretirement benefits
|
(21)
|
|
|
(24)
|
|
|
Deferred income
taxes
|
2
|
|
|
(345)
|
|
|
Net gain on disposal
of assets
|
3
|
|
|
(1)
|
|
|
Working capital
changes(a)
|
435
|
|
|
162
|
|
|
Income taxes
receivable/payable
|
6
|
|
|
18
|
|
|
Other operating
activities
|
12
|
|
|
(32)
|
|
|
|
Total
|
|
313
|
|
|
151
|
|
|
|
|
|
|
|
|
Cash (used in)
provided by investing activities:
|
|
|
|
|
Capital
expenditures(a)
|
|
(217)
|
|
|
(212)
|
|
|
Acquisitions
|
|
—
|
|
|
(25)
|
|
|
Disposal of
assets
|
|
1
|
|
|
1
|
|
|
Other investing
activities
|
|
(18)
|
|
|
5
|
|
|
|
Total
|
|
(234)
|
|
|
(231)
|
|
|
|
|
|
|
|
|
Cash (used in)
provided by financing activities:
|
|
|
|
|
Issuance of long-term
debt, net of financing costs
|
958
|
|
|
—
|
|
|
Repayment of
long-term debt
|
|
(962)
|
|
|
(18)
|
|
|
Receipts from
exercise of stock options
|
—
|
|
|
1
|
|
|
Dividends
paid
|
|
(15)
|
|
|
(15)
|
|
|
|
Total
|
|
(19)
|
|
|
(32)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
5
|
|
|
(32)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
65
|
|
|
(144)
|
|
Cash and cash
equivalents at beginning of the year
|
755
|
|
|
1,354
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of the period
|
$
|
820
|
|
|
$
|
1,210
|
|
(a)2015 amounts have been revised to correct a prior
period error that resulted in decreased capital expenditures of
$64 million with the offsetting
change to accounts payable. Without the correction, 2015 capital
expenditures would have been $276
million.
UNITED STATES
STEEL CORPORATION
|
CONDENSED BALANCE
SHEET (Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30
|
|
Dec. 31
|
(Dollars in
millions)
|
|
2016
|
|
2015
|
Cash and cash
equivalents
|
$
|
820
|
|
|
$
|
755
|
|
Receivables,
net
|
1,250
|
|
|
1,063
|
|
Inventories
|
1,675
|
|
|
2,074
|
|
Other current
assets
|
32
|
|
|
25
|
|
|
Total current
assets
|
3,777
|
|
|
3,917
|
|
Property, plant and
equipment, net
|
4,306
|
|
|
4,411
|
|
Investments and
long-term receivables, net
|
534
|
|
|
540
|
|
Intangible assets,
net
|
193
|
|
|
196
|
|
Other
assets
|
131
|
|
|
103
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
8,941
|
|
|
$
|
9,167
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,631
|
|
|
$
|
1,493
|
|
Payroll and benefits
payable
|
455
|
|
|
462
|
|
Short-term debt and
current maturities of long-term debt
|
82
|
|
|
45
|
|
Other current
liabilities
|
155
|
|
|
148
|
|
|
Total current
liabilities
|
2,323
|
|
|
2,148
|
|
Long-term debt, less
unamortized discount
|
3,058
|
|
|
3,093
|
|
Employee
benefits
|
1,260
|
|
|
1,101
|
|
Other long-term
liabilities
|
386
|
|
|
388
|
|
United States Steel
Corporation stockholders' equity
|
1,913
|
|
|
2,436
|
|
Noncontrolling
interests
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
8,941
|
|
|
$
|
9,167
|
|
UNITED STATES
STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES (Unaudited)
We present adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share, earnings (loss) before interest, income
taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA,
which are non-GAAP measures, as additional measurements to enhance
the understanding of our operating performance. We believe that
EBITDA, considered along with the net earnings (loss), is a
relevant indicator of trends relating to cash generating activity
and provides management and investors with additional information
for comparison of our operating results to the operating results of
other companies. Adjusted net earnings (loss) and adjusted
net earnings (loss) per diluted share are non-GAAP measures that
exclude the effects of restructuring charges, impairment charges,
losses associated with USSC and losses on debt extinguishment that
are not part of the Company's core operations. Adjusted EBITDA is
also a non-GAAP measure that excludes the effects of restructuring
charges, impairment charges and losses associated with U. S. Steel
Canada. We present adjusted net
earnings (loss), adjusted net earnings (loss) per diluted share and
adjusted EBITDA to enhance the understanding of our ongoing
operating performance and established trends affecting our core
operations, particularly cash generating activity, by excluding the
effects of restructuring charges, impairment charges and losses
associated with non-core operations that can obscure underlying
trends. U. S. Steel's management considers adjusted net
earnings (loss), adjusted net earnings (loss) per diluted share and
adjusted EBITDA useful to investors by facilitating a comparison of
our operating performance to the operating performance of our
competitors, many of which use adjusted net earnings (loss),
adjusted net earnings (loss) per diluted share and adjusted EBITDA
as alternative measures of operating performance.
Additionally, the presentation of adjusted net earnings (loss),
adjusted net earnings (loss) per diluted share and adjusted EBITDA
provides insight into management's view and assessment of the
Company's ongoing operating performance, because management does
not consider the adjusting items when evaluating the Company's
financial performance or in preparing the Company's annual
financial outlook. Adjusted net earnings (loss), adjusted net
earnings (loss) per diluted share and adjusted EBITDA should not be
considered a substitute for net earnings (loss), earnings (loss)
per diluted share or other financial measures as computed in
accordance with U.S. GAAP and is not necessarily comparable to
similarly titled measures used by other companies.
RECONCILIATION OF
ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
June 30
|
|
March 31
|
|
June 30
|
(Dollars in
millions)
|
2016
|
|
2016
|
|
2015
|
Reconciliation to
Adjusted EBITDA
|
|
|
|
|
|
|
Net loss attributable
to United States Steel Corporation
|
$
|
(46)
|
|
|
$
|
(340)
|
|
|
$
|
(261)
|
|
|
Income tax (benefit)
provision
|
(7)
|
|
|
14
|
|
|
(186)
|
|
|
Net interest and
other financial costs
|
81
|
|
|
65
|
|
|
55
|
|
|
Depreciation,
depletion and amortization expense
|
129
|
|
|
129
|
|
|
138
|
|
|
EBITDA
|
157
|
|
|
(132)
|
|
|
(254)
|
|
|
Supplemental
unemployment and severance costs
|
(23)
|
|
|
25
|
|
|
19
|
|
|
Loss on write-down of
retained interest in USSC
|
—
|
|
|
—
|
|
|
255
|
|
|
Adjusted
EBITDA
|
134
|
|
|
(107)
|
|
|
20
|
|
UNITED STATES
STEEL CORPORATION
|
NON-GAAP FINANCIAL
MEASURES (Unaudited)
|
|
RECONCILIATION OF
ADJUSTED NET LOSS
|
|
|
|
|
|
|
|
|
|
Quarter
Ended(a)
|
|
|
June 30
|
|
March 31
|
|
June 30
|
(Dollars in millions,
except per share amounts)
|
2016
|
|
2016
|
|
2015
|
Reconciliation to
adjusted net loss attributable to United States Steel
Corporation
|
|
|
|
|
|
|
Net loss attributable
to United States Steel Corporation
|
$
|
(46)
|
|
|
$
|
(340)
|
|
|
$
|
(261)
|
|
|
Supplemental
unemployment and severance costs
|
(23)
|
|
|
25
|
|
|
10
|
|
|
Loss on write-down of
retained interest in USSC
|
—
|
|
|
—
|
|
|
136
|
|
|
Loss on debt
extinguishment
|
24
|
|
|
—
|
|
|
—
|
|
|
Total adjustments
|
1
|
|
|
25
|
|
|
146
|
|
|
Adjusted net loss
attributable to United States Steel Corporation
|
$
|
(45)
|
|
|
$
|
(315)
|
|
|
$
|
(115)
|
|
|
|
|
|
|
|
|
Reconciliation to
adjusted diluted net loss per share
|
|
|
|
|
|
|
Diluted net loss per
share
|
$
|
(0.32)
|
|
|
$
|
(2.32)
|
|
|
$
|
(1.79)
|
|
|
Supplemental
unemployment and severance costs
|
(0.16)
|
|
|
0.17
|
|
|
0.07
|
|
|
Loss on write-down of
retained interest in USSC
|
—
|
|
|
—
|
|
|
0.93
|
|
|
Loss on debt
extinguishment
|
0.17
|
|
|
—
|
|
|
—
|
|
|
Total adjustments
|
0.01
|
|
|
0.17
|
|
|
1.00
|
|
|
Adjusted diluted net
loss per share
|
$
|
(0.31)
|
|
|
$
|
(2.15)
|
|
|
$
|
(0.79)
|
|
(a) The adjustments included in this table for the
quarter ended June 30, 2015 have been
tax effected at the quarterly effective tax rate while the
adjustments for the quarters ended June 30,
2016 and March 31, 2016 have
been tax effected at a 0% tax rate due to the recognition of a full
valuation allowance.
UNITED STATES
STEEL CORPORATION
|
RECONCILIATION OF
ANNUAL ADJUSTED EBITDA OUTLOOK
|
|
|
|
|
|
Year Ended
|
|
|
Dec. 31
|
(Dollars in
millions)
|
2016
|
Reconciliation to
Projected Annual Adjusted EBITDA Included in Outlook
|
|
|
Projected net
earnings attributable to United States Steel Corporation included
in Outlook
|
$
|
50
|
|
|
Estimated income tax
expense
|
30
|
|
|
Estimated net
interest and other financial costs
|
265
|
|
|
Estimated
depreciation, depletion and amortization
|
505
|
|
|
Projected annual
adjusted EBITDA included in Outlook
|
$
|
850
|
|
UNITED STATES
STEEL CORPORATION
|
PRELIMINARY
SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
June 30
|
|
March 31
|
|
June 30
|
|
June 30,
|
|
(Dollars in
millions)
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
SEGMENT EARNINGS
(LOSS) BEFORE INTEREST AND INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
$
|
6
|
|
|
$
|
(188)
|
|
|
$
|
(64)
|
|
|
$
|
(182)
|
|
|
$
|
(131)
|
|
|
|
U. S. Steel
Europe
|
55
|
|
|
(14)
|
|
|
20
|
|
|
41
|
|
|
57
|
|
|
|
Tubular
|
(78)
|
|
|
(64)
|
|
|
(66)
|
|
|
(142)
|
|
|
(65)
|
|
|
|
Other
Businesses
|
10
|
|
|
14
|
|
|
6
|
|
|
24
|
|
|
14
|
|
|
Total Segment
Earnings (Loss) Before Interest and Income Taxes
|
(7)
|
|
|
(252)
|
|
|
(104)
|
|
|
(259)
|
|
|
(125)
|
|
|
|
Postretirement
benefit income (expense)
|
12
|
|
|
16
|
|
|
(14)
|
|
|
28
|
|
|
(27)
|
|
|
|
Other items not
allocated to segments:
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental unemployment
and severance costs
|
23
|
|
|
(25)
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
|
Loss on write-down of
retained interest in USSC
|
—
|
|
|
—
|
|
|
(255)
|
|
|
—
|
|
|
(255)
|
|
|
|
Loss on shutdown of coke
production facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(153)
|
|
|
|
Restructuring and other charges
|
—
|
|
|
—
|
|
|
(19)
|
|
|
—
|
|
|
(19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before interest and income taxes
|
$
|
28
|
|
|
$
|
(261)
|
|
|
$
|
(392)
|
|
|
$
|
(233)
|
|
|
$
|
(579)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
EXPENDITURES
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled(a)
|
$
|
28
|
|
|
$
|
46
|
|
|
$
|
56
|
|
|
$
|
74
|
|
|
$
|
124
|
|
|
|
U. S. Steel
Europe
|
22
|
|
|
29
|
|
|
24
|
|
|
51
|
|
|
45
|
|
|
|
Tubular
|
18
|
|
|
52
|
|
|
24
|
|
|
70
|
|
|
40
|
|
|
|
Other
Businesses
|
1
|
|
|
21
|
|
|
—
|
|
|
22
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total(a)
|
$
|
69
|
|
|
$
|
148
|
|
|
$
|
104
|
|
|
$
|
217
|
|
(b)
|
$
|
212
|
|
(b)
|
(a)The amount for the six months ended June 30, 2015 has been revised to correct a prior
period error that resulted in decreased capital expenditures of
$64 million. Without the correction,
total capital expenditures for the six months ended June 30, 2015 would have been $276 million.
(b) Excludes the (decrease) increase in accrued capital
expenditures of $(96) million and
$46 million for the six months ended
June 30, 2016, and 2015,
respectively.
UNITED STATES
STEEL CORPORATION
|
|
PRELIMINARY
SUPPLEMENTAL STATISTICS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
June 30
|
|
March 31
|
|
June 30
|
|
June 30,
|
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
Average realized
price: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled ($/net
ton)
|
642
|
|
|
611
|
|
695
|
|
625
|
|
|
731
|
|
|
|
U. S. Steel Europe
($/net ton)
|
485
|
|
|
458
|
|
533
|
|
472
|
|
|
532
|
|
|
|
U.
S. Steel Europe (euro/net ton)
|
430
|
|
|
415
|
|
483
|
|
423
|
|
|
476
|
|
|
|
Tubular ($/net
ton)
|
1,050
|
|
|
1,180
|
|
1,651
|
|
1,123
|
|
|
1,641
|
|
|
Steel Shipments
(thousands of net tons):(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
2,692
|
|
|
2,498
|
|
2,712
|
|
5,188
|
|
|
5,329
|
|
|
|
U. S. Steel
Europe
|
1,125
|
|
|
1,004
|
|
1,091
|
|
2,129
|
|
|
2,355
|
|
|
|
Tubular
|
70
|
|
|
89
|
|
92
|
|
159
|
|
|
312
|
|
|
|
|
Total Steel
Shipments
|
3,887
|
|
|
3,591
|
|
3,895
|
|
7,476
|
|
|
7,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
Shipments (thousands of net tons):
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled to
Tubular
|
—
|
|
|
42
|
|
96
|
|
—
|
|
|
245
|
|
|
Raw Steel Production
(thousands of net tons):
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
2,735
|
|
|
2,779
|
|
2,808
|
|
5,514
|
|
|
5,676
|
|
|
|
U. S. Steel
Europe
|
1,258
|
|
|
1,152
|
|
1,200
|
|
2,410
|
|
|
2,483
|
|
|
Raw Steel Capability
Utilization: (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat-Rolled
|
65
|
%
|
|
|
66
|
%
|
58
|
%
|
65
|
|
%
|
59
|
%
|
|
|
U. S. Steel
Europe
|
101
|
%
|
|
|
92
|
%
|
96
|
%
|
97
|
|
%
|
100
|
%
|
(a) Excludes intersegment shipments.
(b) Based on annual raw steel production
capability of 17.0 million net tons for Flat-Rolled and 5.0 million
net tons for U. S. Steel Europe. Prior to the permanent
shutdown of the blast furnace and associated steelmaking
operations, along with most of the flat-rolled finishing operations
at Fairfield Works late in the third quarter of 2015, annual raw
steel production capability for Flat-Rolled was 19.4 million net
tons.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/united-states-steel-corporation-reports-improved-2016-second-quarter-results-and-stronger-cash-and-liquidity-position-300304364.html
SOURCE United States Steel Corporation